Alstom signs five-year maintenance contract worth $53m with Jeddah Airports

French company will provide services at King Abdulaziz International Airport

About 30 million passengers pass through King Abdulaziz International Airport in Jeddah annually. AFP
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French transport infrastructure company Alstom has signed a five-year operation and maintenance contract with Jeddah Airports Company worth 200 million Saudi riyals ($53.3m) for Terminal 1 at the King Abdulaziz International Airport.

The company secured an initial contract in August 2019 to run until June 2021, with the new one now in place until 2027, Alstom said on Tuesday.

King Abdulaziz International Airport is one of Saudi Arabia’s largest, occupying an area of 102 square kilometres, and welcomes about 30 million passengers every year.

Under the new contract, Alstom will continue to provide operations and maintenance services for the Innovia automated people mover within the airport, it said.

"Alstom has been present in the kingdom for more than 70 years and our strategy is one of long-term partnership," said Mohamed Khalil, managing director of Alstom Saudi Arabia.

"It also reiterates Alstom’s commitment to supporting the development of Saudi Arabia's public infrastructure in line with Vision 2030."

Saudi Arabia is aggressively diversifying its economy away from oil as part of its Vision 2030 agenda, with tourism one of the key pillars.

To support the growth of the industry, the kingdom is investing heavily in aviation infrastructure.

The country has earmarked $147 billion to enhance airport facilities to serve 330 million passengers by 2030, expand its transport sector and launch a new national airline alongside the established Saudia, Flynas and Flyadeal.

The kingdom's National Aviation Sector Strategy also aims to increase travel routes to 250 destinations and double air cargo capacity to 4.5 million tonnes.

The travel sector aims to generate 280bn riyals for Saudi Arabia’s gross domestic product by 2030.

Saudi Arabia, the Arab world's largest economy, this year announced the privatisation of its airports' ownership, with 29 currently being prepared for the process. Plans are also under way for a new international airport in Riyadh.

Alstom has been expanding its presence in the kingdom and supported the Haramain high-speed rail line between Makkah and Madinah. It also supplies an integrated Metro system for lines 3, 4, 5 and 6, plus maintenance.

In August, the company signed a preliminary agreement with the kingdom's Ministry of Investment to identify opportunities in railway infrastructure powered by sustainable technology and energy sources with lower carbon emissions.

The deal will also look into the establishment of Alstom's regional headquarters in the kingdom, the Saudi Press Agency said at the time.

Updated: October 11, 2022, 2:10 PM